There are several financial issues that should be carefully considered during divorce. For example, workplace retirement accounts like 401(k)s and pensions must be divided pursuant to a qualified domestic relations order (QDRO). Also, student loans taken out before marriage and then repaid with marital funds may provide an opportunity to claim a credit when negotiating an equitable distribution of marital assets. This article lists some other important issues.
Tag Archives: retirement
Divorce and Money: Common Pitfalls to Avoid
5 Retirement Planning Steps To Take When Clients Divorce
Following equity in the marital home, retirement plan assets usually represent a large chunk of the marital assets. Splitting the retirement plan assets is accomplished by using a qualified domestic relations order (QDRO). Depending on the type of plan, the ex-spouse of the plan participant rolls over her/his share of the retirement plan assets into an IRA. If funds are needed post-divorce, the ex-spouse is also allowed to take an early distribution without a penalty if under age 59 ½. However, taxes will have to be paid on the distribution. Read this article for additional tips on managing retirement assets post-divorce.
This Is Why Baby Boomers Are Divorcing at a Stunning Rate
Recent studies confirm the increase in gray divorces which refers to divorces involving couples that are older than 50. There has been an increase of 109% from 1999 to 2015 according to this article. Couples in second or third marriages are even more likely to get divorced. Divorce will affect each party’s finances but it can be especially tough on the spouse who may have stayed home to raise children or who earns a low salary. It is critical for these individuals to optimize the division of marital assets in order to meet their future needs. During the divorce process,
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Samalin Divorce Finance helps clients analyze their options.